Tag Archives: Top Alternative Investment Ideas To The Stock Market

The Best Way to Secure Your Stock Market Gains: Why You’ll See Most Stock Market Investors Pull Out in the Next 6 Months

We’ve all been on this ride before. The stock market is at an all-time high!
This past week, the Dow Jones eclipsed the 26000 mark for the first time in history and everybody is excited. The current bull market began nearly 9 years ago and is the longest running bull market ever. Even individual investors who got burned in the crash of 2008-09 have jumped back into the market and have long forgotten the period of time spent praying for their 401K’s to recover from that calamity. Right now, things are going good with our investments and our 401K’s look so promising that we can flirt with the idea of retiring and enjoying life in the sunshine.

However, in recent weeks some investment professionals have begun warning that the nearly nine-year-old bull market may be entering its “euphoria phase” — which typically marks the final stage of a long, upward climb for stocks. This stretch of a bull market is characterized by higher share prices, rising investor optimism and fresh cash being funneled into the stock market by investors who fear missing out on gains despite the market’s lofty levels. This “irrational exuberance” can lead to some very undesirable outcomes. So, now may be the time to secure those gains and quit while you’re ahead.

Martin Feldstein, one of the most influential Republican economists of the last 40 years, is warning that the stock market is poised to plunge. In a Wall Street Journal column with the headline “Stocks Are Headed for a Fall,” Feldstein argued “When interest rates rise back to normal levels, share prices are also likely to revert to previous norms,” he wrote. “…The implied fall in the market would reduce the value of household equities held directly and through mutual funds by $10 trillion.” This prediction comes as stocks continue one of their strongest runs ever, regularly setting record highs, and going for the longest period on record without even a modest 3% pullback. Feldstein was the chairman of The Council of Economic Advisers under President Reagan and an adviser to President George W. Bush credited with being one of the fathers of his administration’s tax cut plan.

In an effort to preserve savings and watch from the sidelines when the market inevitably collapses, many people are now pulling their money out of the stock market and reinvesting in two big areas, Real Estate and/or Franchise Businesses. The major benefit of this strategy is it can reduce portfolio risk at the same level of investment return. These returns have relatively low correlations with other asset classes such as stocks and bonds so regardless how the market is performing, your rate of return is unaffected. Additionally, with Real Estate or a Franchise, you have and maintain the ability to influence that assets performance. To speak with an expert and learn more, visit JPaytonconsulting.com.


Top Stock Market Alternative Investment Ideas

In today’s lightning fast age of digital information fortunes can be made or lost in the blink of an eye. Extensive research and having access to relevant, timely information give the professionals on Wall St. the advantage when it comes to investing money. Investing in the stock market is serious business. If you don’t approach it in that manner, you may as well take your money to Las Vegas and bet on all the favorites and whatever longshots you feel good about.  Chances are you won’t be successful. The typical American doesn’t have the time, access to information and sophistication to successfully manage a stock portfolio so they rely upon these professionals to make safe investments for them in the form of managed fund accounts. While taking this alternative investing approach to individual stocks may disperse some of the risk and already be conveniently packaged as allocation choices within your 401K, they are still heavily reliant upon the financial markets and therefore presents itself as the basket in which all your eggs lie. When it comes to investing money for the long term, the cycle most Americans follow is the Financial Market Roller Coaster. Optimism as the stock market climbs, panic as the market crashes, skepticism over the next few years while re-investing to cover previous losses then the cycle starts over again. For those who want to get off that roller coaster, click alternative investing ideas to learn more about tangible businesses and real estate options.

The political climate has a huge influence on the overall financial markets therefore the volatility of your individual savings rest in the hands of external influences. History has taught us that just as fast as the financial markets go up, with absolute certainty, they will crash back down exacting revenge upon all who weren’t highly informed as to the impending market crash and or swift enough to bail out with minimal damage.  The current political climate is positive and according to a Politico Magazine article Bill Ackman, the billionaire founder and CEO of Pershing Square Capital Management LP, said this of his market bullishness and the Donald Trump presidency. “My thinking is as follows; the United States is the greatest business in the world and it’s been unmanaged for a very long period of time. We now have a businessman as the president and he has power because Republicans control Congress. He’s going to launch a major infrastructure program. He’s going to take corporate taxes down to a sensible level and get rid of loopholes. He’s going to get a lot done and nothing has gotten done in a very long period of time. And if you are an activist investor, you want someone to come in, take over and get things that need to get done, done.” While information such as this fuels the optimism segment of the Financial Market Roller Coaster, very little is discussed regarding market volatility and exit strategies prior to significant impact by an inevitable bear market. Alternative investment ideas outside of the stock market allow investors to consistently achieve a desired rate of return regardless of financial market performance. Investing money into tangible businesses and real estate puts a higher level of control back into the investor’s hands.

Once an individual has decided to embark upon an alternative investment approach, where to invest money now becomes a function of identification and evaluation of investment opportunities within your immediate realm. Unlike financial market dependency upon a fund manager’s information, judgement and discretion, the information and research necessary to make an intelligent decision can be as close as first hand. The ability to geographically choose where to invest money can also influence your decision of the best way to invest money (tangible business or real estate). Investment into an area in which you have intimate knowledge of the demographics, service needs, real estate trends and competition will allow you to maximize your investment opportunity. You do not need to become an expert in all those areas but becoming an expert in building your team of experts will make you very successful. Working with a highly skilled business consulting firm will allow you to tap into their pool of Franchise Concepts and Real Estate networks drastically shortening your ramp up time and increasing your efficiency. By choosing to open a franchise rather than start from scratch with a new business idea, you can take advantage of brand recognition, a track record of existing franchisee’s success and a fully developed operation system with your profit built in as an expense item.

Safe investments are as safe as your individual risk tolerance says they are. When it comes to investing your money, alternative investment ideas to the stock market such as tangible businesses and real estate provides you with a higher level of investment control as well as a tangible asset connected to your investment dollar. If you want to learn more, register for the webinar “Protect Your Savings Outside The Stock Market” or contact an expert business consulting firm for assistance.